Companies in this industry act as agents to sell insurance policies and annuities underwritten by insurance carriers. Major companies include Arthur J Gallagher, Brown & Brown, and Marsh (all based in the US), as well as Aon, Lloyd's of London, and Willis Group (all based in the UK); and CNinsure (China).

The global insurance industry, which includes carriers as well as agents and brokers, generates about $5 trillion in premium volume each year. The health and property and casualty segments have seen the strongest growth in recent years, according to Aon.

The US insurance agencies and brokerages industry includes about 132,000 establishments (single-location companies and units of multi-location companies) with annual revenue of about $110 billion.

Many companies that primarily offer insurance products to businesses function mainly as brokers. Captive agencies operate as a sales agent for a single insurer, working on its behalf; independent brokers sell products from several providers. Insurance carriers are covered in separate industry profiles.

COMPETITIVE LANDSCAPE

Demand is related to consumer income and commercial activity. When the economy grows, so does the demand for personal and business insurance. When the economy contracts, as it did in the late 2000s, demand for insurance falls. Despite the prominence of large companies in the commercial segment, the US industry remains highly fragmented: the largest 50 firms only hold 25 percent of the total market.